Past service under Zilla Parishad is deemed to be service under Pune Municipal Corporation as per Clause (5) of Appendix IV of the MMC Act.

Headnote:MUNICIPAL CORPORATION - SENIORITY DISPUTE - MMC Act, 1949, Section 3(1), 3(3), Appendix IV, Clause 5 - The court discussed the applicability of Sections 3(1) & 3(3) of the MMC Act and Clause (5) of Appendix IV in resolving a seniority dispute between primary teachers transferred from Zilla Parishad to Pune Municipal Corporation. The court held that the service rendered by the teachers in ZP must be counted towards their seniority in PMC as per Clause (5) of Appendix IV, protecting their past service.
Fact of the Case:
The case involved a dispute over whether services rendered by primary teachers in Zilla Parishad should be counted towards their seniority after transfer to Pune Municipal Corporation.
Finding of the Court:
The court found that the service rendered by the teachers in Zilla Parishad must be considered as service rendered in Pune Municipal Corporation for determining their seniority.
Issues:
The main issue was whether the past service of primary teachers in Zilla Parishad should be considered for fixing their seniority after absorption into Pune Municipal Corporation.
Ratio Decidendi:
The court relied on Clause (5) of Appendix IV of the MMC Act, which explicitly provided for counting past service in Zilla Parishad as service in the Municipal Corporation.
Final Decision:
The appeal was dismissed, and it was held that the service rendered by the teachers in Zilla Parishad must be counted towards their seniority in Pune Municipal Corporation.

JUDGMENT :

Surya Kant, J.

1. Leave granted.

2. The issue that requires our consideration in this case is whether the services rendered by primary teachers while in the service of the Zilla Parishad (hereinafter “ZP”) deserves to be counted towards their seniority after the transfer and merger of their services into the Pune Municipal Corporation (hereinafter “PMC”)?

FACTS:

3. The State of Maharashtra is vested with the power to specify a ‘larger urban area’ of a municipal corporation under Section 3(1) of the Maharashtra Municipal Corporation Act, 1949 (in short, “MMC Act”). Such an area can further be altered by issuing a Notification under Section 3(3). The expression, “larger urban area” is defined under Article 243Q(2) of the Constitution, which says that:-

“(2) In this article, “a transitional area” a “smaller urban area” or “a larger urban area” means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part.”

4. State of Maharashtra in exercise of its powers under Section 3(1) of MMC Act decided to expand the territorial limits of the PMC and, consequently, the geographical area of 38 villages which were part of the Pune ZP were merged into the PMC with effect from 01.11.1999. Post the merger, primary teachers as well as employees from other departments who were serving in those villages were given the option to have themselves transferred and absorbed into the services of PMC.

5. In this context, Sections 3(1) & 3(3) of the MMC Act being relevant are reproduced below:-

“3. Specification of larger urban areas and constitution of Corporations:

(1) The Corporation for every City constituted under this Act existing on the date of coming into force of the Maharashtra Municipal Corporations and Municipal Councils (Amendment) Act, 1994, specified as a larger urban area in the notification issued in respect thereof under clause (2) of Article 243Q of the Constitution of India, shall be deemed to be a duly constituted Municipal Corporation for the larger urban area so specified forming a City, known by the name "The Municipal Corporation of the City of...."

xxx xxx xxx

(3) [(a) Subject to the provisions of sub-section (2), the State Government] may also from time to time after consultation with the Corporation by notification in the Official Gazette, alter the limits specified for any larger urban area under sub-section (1) or sub-section (2) so as to include therein, or to exclude therefrom, such area as is specified in the notification.

(b) Where any area is included within the limits of the [larger urban area] under clause (a), any appointments, notifications, notices, taxes, orders, schemes, licences, permissions, rules, byelaws or forms made, issued, imposed or granted under this Act or any other law, which are for the time being in force in the [larger urban area] shall, notwithstanding anything contained in any other law for the time being in force but save as otherwise provided in section 129A or any other provision of this Act, apply to and be in force in the additional area also from the date that area is included in the City.

xxx xxx xxx”

6. Respondent Nos. 5 to 79 were working as Primary Teachers in the Pune ZP. They were appointed on different dates prior to 01.11.1999. They too were given option for their merger in the PMC. They opted to accede to the absorption and joined the PMC. It may be relevant to mention at this stage that with a view to regulate the conditions of service of employees who are merged from the Zilla Parishad to Municipalities, the State Government had passed a Resolution (hereinafter “GR”) dated 13.08.1990, the relevant part whereof reads as follows:-

“xxx xxx xxx government was considering whether to consider serv